asked the Minister for Industry and Commerce if his attention has been drawn to the fact that many large Irish corporations have not yet established effective 1992 internal committees, notwithstanding the Government's EUROPEN Campaign and the support given by the Taoiseach in July 1988; the steps he proposes to take to ensure that every Irish enterprise likely to be affected by the 1992 process will take the necessary steps; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - 1992 Internal Committees.
29.
A primary objective of the Government's information campaign on 1992 has been to ensure that every business firm in the country likely to be affected by the fundamental changes which the completion of the internal market will bring are aware of the changes now being put into place which will affect their operations. To this end both I and my colleagues in Government, in close consultation with the social partners, including the trade unions and employer bodies, have engaged in a systematic series of seminars, meetings and information dissemination to make clear to the business sector the opportunities and the threats which 1992 will bring. As part of this campaign we have published information leaflets and booklets on the changes being put into place and we have provided a check list of actions which firms should undertake to prepare for 1992. I am firmly of the view that if firms prepare adequately the completion of the internal market will offer very significant new opportunities for the growth and development of Irish business.
It must, however, be made perfectly clear that the ultimate responsibility in preparing for the changes which the completion of the internal market will bring — which indeed have already started — rests with each individual firm. No amount of advice, information and support from the Government and their agencies can substitute for the practical preparations and hard commercial decisions which individual firms must undertake to prepare for the new opportunities and the more intense competition that will arise with the completion of the internal market.
As a matter of general operation support from the State industrial promotion agencies is available only to firms which can demonstrate that they have in operation an effective business plan. Any such plan must now inevitably take into consideration and provide specifically for the changes in the existing and potential markets of the firms that arise from the completion of the internal market. This is the only practical way the Government and their agencies can bring leverage to bear on individual firms to ensure adequate preparations for 1992 and this approach will be maintained.
Would the Minister agree that the campaign being run by his Department has been largely unsuccessful up to now in that small and medium sized companies are not taking any steps to prepare for 1992? While I accept that it is their own responsibility to do so can the Minister tell me what steps the IDA are taking to encourage the establishment of linkages between companies in Europe and medium sized companies in this country and if there has been much activity in this area so as to ensure that these companies are strengthened through the formation of partnerships before the advent of 1992?
I share the Deputy's concern. There is a great awareness within companies but I would like to see more action being taken by a number of the companies. I can assure the Deputy that the linkage programme forms a very important part of the IDA's development work not only within Europe but also outside of it. I can also assure the Deputy that everything that can be done by the State agencies is being done. Not only are we using the IDA, we are also using the marketing side of CTT as we can give some of our own companies the benefit of their marketing knowledge.
The Minister has acknowledged that many of our companies do not have the necessary management capacity or resources. Would he consider therefore putting the manpower resources of CTT and perhaps the IDA at the disposal of some of these companies, if sought, to enable them get over some of the initial stages?
I am sure the Deputy is aware of the mentor scheme, aimed at helping smaller companies, which has proved very successful. Under this scheme retired senior executives from a wide range of companies across the country make their time and expertise available to smaller companies. Of course the IDA are the promoters of that scheme. In that way we are helping smaller companies. The Deputy and the House can be assured that the full resources of the agencies concerned will be made available but there are constraints on manpower and there is no point in denying that in the House.
Given that there is a need for companies to gear themselves up, would the Minister not agree that there is a strong onus on the Government at this stage to indicate what their intentions are in relation to tax harmonisation? For example, what are the Government's intentions in relation to the enormous food sector? Will it have to bear a 9 per cent VAT rate in 1992?
The Deputy is extending the scope of this question out of all proportion.
That is obviously a separate question.